India, which bans direct advertising of liquor, is set to unleash sweeping new rules that will now prohibit surrogate ads and sponsoring of events.
This is likely to force firms such as Carlsberg, Pernod Ricard and Diageo to redraw marketing campaigns.
Such kind of “surrogate ads” often manage to skirt around the ban by ostensibly depicting less desirable items such as water, music CDs or glassware, adorned with logos and colors that are associated with their key products. They are often promoted by popular Bollywood stars to enhance their appeal and visibility.
For example, brewer Carlsberg has promoted its Tuborg drinking water in India with an ad showing film stars at a rooftop dance party and the slogan ‘Tilt Your World’. Echoing its beer ads elsewhere, the ad is emblazoned with the message: “Drink Responsibly”.
Now, however, India can bring fines to companies and bans for celebrities for endorsing tobacco and liquor ads that are deemed misleading, according to Reuters, who cited a top civil servant.
The official, Nidhi Khare, said that companies cannot take circuitous ways to promote their products, and informed Reuters that the final rules were expected to be issued within a month.
“If we find ads to be surrogate and misleading, then even those who are endorsing (products), including celebrities, will be held responsible,” Khare said.
Under the new rules, penalties are based on consumer law. Manufacturers and endorsers may face fines up to 50 lakh rupees, and promoters could face endorsement bans that range from one to three years.
These changes threaten a massive change for liquor makers in India, which is the world’s eighth-biggest alcohol market by volume as per the Euromonitor’s estimates. While its growing affluence makes it a theoretically lucrative market for several beer companies, these restrictions will likely curb potential marketing benefits.
On the other hand, the World Health Organization asserts that bans or comprehensive restrictions on alcohol advertising are “cost-effective measures” for public health.
